‹ Back To Pilot Programs

Onyx Medical LLC

Project Number: 20180301
Pilot Type: Expansion
Status: Approved
Parcel ID: 08904400360
County Commission District: 5 | City Council District: 1

Summary

This PILOT amendment request is being made to accommodate significant increases in necessary capital expenditures, increases in projected employment and a marginal decrease in the average wage related to the company’s commitment to retain its U.S. headquarters and expand its manufacturing facility in the City of Memphis.

Onyx Medical LLC (“Applicant”) was approved for a ten-year Expansion PILOT to enable the company to retain 116 jobs, create 40 net new jobs and invest $13,687,995 at 1800 North Shelby Oaks Drive.

The total project investment includes $307,250 for the purchase of land, $3,380,945 for construction and site improvements and $6,000,000 for equipment and manufacturing machinery. The Applicant is requesting Community Reinvestment Credit for property valued at $3,999,800 ($545,300 for land and $3,454,500 for building).

The Applicant will maintain a total of 156 employees with an average salary of $52,939 including overtime and bonus but excluding benefits.

Parcel 08904400360 (1800 North Shelby Oaks Drive) is 4.55 acres and contains a 52,536 square foot manufacturing facility. Parcel 08904400366 (0 North Shelby Oaks Drive) is 2.05 acres and will enable the Applicant to expand its facility by approximately 27,000 additional square feet. New personal property investments and real property will be included in the PILOT.

Onyx Medical LLC is a contract manufacturer of precision medical devices headquartered in Memphis, Tennessee. Since 1990, Onyx has provided wires, guide pins, drills and screws for the world’s leading orthopedic companies. The company has expanded multiple times in Shelby County over the last 25 years. Through a new ownership structure, the company now has sister operations in Sweden, Denmark and China.

The company is poised to grow once more. This growth necessitates a larger facility with new manufacturing equipment.
Staff projects $7,662,621 in local total tax revenues to be received during the PILOT term of this project and an estimated $1,931,201 benefit to the Applicant.

PILOT Term:

10

Projected New Jobs:

40

Projected Retained Jobs:

116

Total Jobs:

156

Projected Average Payroll of New Jobs:

$52,939

Projected Average Payroll of Retained Jobs:

$55,797

Annual New Direct Payroll:

$2,117,560

Annual Retained Direct Payroll:

$6,472,452

Total Capital Investment:

$13,687,995
Real Property Investment:
$3,688,195

Personal Property Investment:
$6,000,000

Community Reinvestment Credit (CRC):
$3,999,800

Capital Investment not in PILOT:
Not applicable

Projected Tax Revenue:

$7,662,621

Projected Taxes Abated:

$1,931,201
City: $843,935 (75%)
County: $1,087,266 (75%)

Benefit/Cost Ratio:

3.97

Projected MWBE/LOSB Spending:

$1,134,916

Incentive Provided:

$1,931,201

Compliance Information

Not applicable

Approved

3/21/2018

Ramp up Period

2

Closing

12/31/2018 (Real)
12/31/2018 (Personal)

Effective

12/31/2018

Lease Begins

12/31/2018 (Real)
12/31/2018 (Personal)

Lease Expires

12/31/2028 (Real)
12/31/2029 (Personal)

Amended

Not applicable

Property Details

Lease Began

12/31/2018 (Real)
12/31/2018 (Personal)

Lease Expires

12/31/2028 (Real)
12/31/2029 (Personal)

Onyx Medical LLC

1800 North Shelby Oaks Drive, Memphis, TN 38134